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Running head: ISSUES IN SUPPLY CHAIN MANAGEMENT

Supply Chain
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ISSUES IN SUPPLY CHAIN MANAGEMENT

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Issues in Supply Chain Management
Supply chain comprises of several links that allow the movement of goods from
producers to customers. Besides, this movement attracts several costs for the involved entities.
The global competition transformed how products move globally and their production.
Globalization resulted in the new structure referred to as the global supply chain. The global
value chains are a means for companies to achieve competitive advantage by either low costs or
differentiation involving the activities undertaken by the link between suppliers and the buyers.
The networks should also get carefully managed to minimize costs. The activities involved
attracts the costs and especially in the underdeveloped nations. A company that seeks to be
competitive must have a supply chain that is cost-efficient. However, ensuring this component
attracts challenges in underdeveloped countries.
One of the factors to consider concerning cost and non-cost issues in underdeveloped
nations is the protection of a company’s brand. Several multinational supply chain managers
struggle in strengthening supplier compliance with the international standards which involves
worker safety, environmental performance, and quality assurance. Conversely, such efforts can
be supported on the underdeveloped nations in Latin America, Asia, and Africa without
incurring costs. Overseeing a global supply chain requires influencing suppliers to protect and
improve the company's brand (Christopher, 2016). The influence can get diluted when operating
in underdeveloped countries. Most of the nations contain workers who possess low literacy
levels, and some are even illiterate. Also, government regulation is often weak. Operating crossculturally can be prohibitively expensive. Additionally, the geographic and cultural divide put in
the mix makes the company involved think the attempts on raising standards may put a
supplier’s product and the company’s product at a cost disadvantage.

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Optimizing the supply chain can prove difficult in some countries in Asia. The region
comprises diverse languages, business practices, regulations, infrastructure, and currencies which
makes attempts to optimize the supply chain futile. The diversity can exist not only in countries
but also in the cities within the same nation. Supply chai...